Risk and Solutions for Economic Entities Identified Through Integrated Reporting

AbstractThe professional accountant is the one who verifies accounts, advises, makes an economic and financial diagnosis on the activity carried out by the economic entity, and also supports the management team in the decision-making process. In this time of crisis, more than ever, the professional accountant no longer only responds to the well-known challenges of the current activity but must inform the management team about the new risks that may affect the activity of the entity. By providing solutions to the management team, he must stay focused on respecting the fundamental principles of professional ethics. This chapter focuses on integrated reporting of companies, which aims to present by the economic entity information on the conduct of its business, as well as the steps by which it achieves added value over time. But how many economic entities do this integrated reporting? How many entities provide information about its capitals: human, financial, intellectual, or social? Are certain risks associated with these capitals? These are some questions we want to answer through our study. In this regard, by studying the financial reports of companies listed on the Bucharest Stock Exchange, we have extracted information on the capital used by economic entities, the risks identified by these entities, and the solutions presented by the professional accountants respecting ethical principles. The study concludes with the formulation of conclusions on how information is reported by economic entities and whether there is a link between integrated reporting and the field of activity to which it belongs.KeywordsIntegrated reportingAdded valueIntellectual capitalTurnoverRisk